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The Secret to Servicing Multi-Family Offices

By Crucial Clips     March 7, 2018
The following text is a transcript of a portion of a speaker's presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Financial Advisor IQ or any other group.
Source: FA-IQ, Feb. 8, 2018 

RITA RAAGAS DE RAMOS, SPECIAL PROJECTS MANAGER, FA-IQ: Hello. I'm Rita Raagas De Ramos, from Financial Advisor IQ. And with me is Norm Cook, president and chief marketing officer of Halite Partners. Halite's business is more strongly focused on institutional investor-type solutions for multi-family offices. Can you speak a little bit more about that and your specialization?

NORM COOK, PRESIDENT, HALITE PARTNERS: Sure. We think that it is a distinct advantage, in that our history has been managing assets for large institutions -- pension plans, endowments, foundations, health care systems. So being able to construct sophisticated portfolios for those types of entities, and now being able to bring that capability to individuals and family offices that have not had that ability to access that type of investment management, we think is a clear distinctive advantage for us.

So most retail investors or family offices have dealt with a financial advisor, and it's not the fault of the advisor they don't have the same access to the investment managers that we have access to. A lot of the best managers in the world only play in the institutional space. And because of our long 30-year plus history of working with these managers, we now have the ability to use our same capabilities that we have done so successfully for the endowment, foundation, corporate world, for family offices.

RITA RAAGAS DE RAMOS: How important is it for these investors to get that kind of access?

NORM COOK: We think not only is it important, that they deserve that type of investment acumen and sophistication. So when we sit down with a wealthy individual or a family office and talk about our capabilities and our long-term track record, they are very excited to be able to access that. So from private credit to private equity to alternatives and hedge funds, they understand that. They just have not had access.

Because a lot of times, the private marketplace demands a very high AUM in order to get in. So some private equity firms have a $75 million minimum. Hedge funds may have a $10 or $15 million minimum in order to access them. Because of our relationship in the institutional marketplace, we are now able to offer a lower minimum for our individual clients, which gives them access that they would not normally have.

RITA RAAGAS DE RAMOS: Your firm believes in giving the clients the opportunity to enjoy their wealth. I find this to be interesting. How exactly are you able to give this service?

NORM COOK: Yeah. So we believe in the EQ side, as well as the IQ. And so a lot of the wealthy families that we deal with have been hard charging, entrepreneurial, and now they've accumulated this wealth. And what we find is that someone needs to give them permission to be able to live their life. And we literally can see that in their body language when we say, fly private. Go on that vacation. You have enough cash flow to be able to do all of the things that you want.

And so we spend a great deal of time working with our families on, what is your mission? What is your family purpose? And we actually will work with them to create a family purpose statement. And that becomes the foundation for all of the other decisions that we will help them make in their financial world. And part of that is being able to provide them with a dashboard on a daily basis of all of their wealth, which we also feel is unique, as we're able to put all of their equity and their real estate and their art collections and any other piece of investment that they have into one unified dashboard that allows them to see their cash flows, see where their risk profiles are, and allows us to build a portfolio that gives them the confidence that they can live their life, and they can do it really well.

RITA RAAGAS DE RAMOS: Thank you, Norm.

NORM COOK: Thank you.